John L. King
Economist, United States Department of Agriculture Economics Research Service
Norbert L.W. Wilson
Assistant Professor, Department of Agricultural Economics and Rural Sociology, Auburn University
Anwar Naseem
Research Associate, Department of Agricultural, Food and Resource Economics, Rutgers University

This study employs event study analysis to examine two merg- ers and acquisitions (M&A) of publicly traded firms. The stock price effect of these combinations in the agricultural biotechnol- ogy industry indicates a market expectation of their profitability. The paper also discusses the broader context of agricultural bio- technology M&A activity in the 1990s, focusing on innovation and competition.

Key words: Agricultural biotechnology, event study, industrial organization, mergers and acquisitions.